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gut spread

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Financial Dictionary

Gut Spread

An option strategy created by selling an in-the-money put at the same time as an in-the-money call.

Investopedia Commentary

By entering into this position, the investor, receiving a large premium up-front, hopes that the options expire worthless.

Related Links

Options Basics Tutorial

See also: Call, In the Money, Long Jelly Roll, Option, Out of the Money, Put, Spread

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